The Federal Court handed down the fines in relation to an earlier ruling that the union and Hutchison had entered into an agreement to boycott a waterproofing firm at a Brisbane building site.

The boycott meant the waterproofer could no longer perform work.

The case was brought by the Australian Competition and Consumer Commission which said the fine for the union was the maximum penalty allowable.

ACCC chair Gina Cass-Gottlieb said the fines should send a strong deterrence message to the union and Hutchison as well as other businesses that boycott conduct was illegal.

In her judgment, Justice Kylie Downes said the union’s conduct was another instance of its “pursuit of a strategy of deliberate recalcitrance in order to have its way”.

She said the union’s determination to stick to a strategy of requiring subcontractors on construction sites to have an enterprise bargaining agreement was in defiance of the law and was a significant consideration.

The court found that Hutchison and the CFMEU reached an agreement that Hutchison would no longer use the waterproofing services of WPI. It also found that the union induced Hutchison’s contraventions by threatening or implying that there would be a conflict with or industrial action by the CFMEU if the company did not stop using WPI.

“This type of conduct not only impacts the targeted company but also competition in the industry more generally and is likely to inflate the cost of construction projects,” Cass-Gottlied said.

The union and Hutchinson were also ordered the pay the costs of the ACCC.

CFMEU state secretary Michael Ravbar was highly critical of the court ruling and said the union would appeal the decision.

“The facts are that the CFMEU has a legally binding EBA with Hutchison which clearly stipulated all workers on the site were to be paid EBA rates,” Ravbar said.

He said the union had proved to the court that the subcontractor was not complying with the agreement and shortchanging its workers.